Key Takeaways
- Berkshire Hathaway shares set a fresh record high Monday after the conglomerate reported over the weekend that its fourth-quarter operating earnings surged more than 70% from a year earlier.
- The stock broke out above the the top trendline of an ascending triangle on Monday, potentially setting the stage for following-through buying.
- A measured move forecasts an upside target of $555, while bars pattern analysis predicts a price target of around $560.
- Investors should watch a key area of support on Berkshire’s chart around $485, which could flip from prior resistance into future support.
Berkshire Hathaway (BRK.B) shares jumped to a record high Monday after the conglomerate reported over the weekend that its fourth-quarter operating earnings surged more than 70% year-over-year.
Sentiment surrounding the stock may have also received a boost after CEO Warren Buffett said in his annual letter to shareholders that the majority of the company’s money remains invested in equities—and would continue to be—despite its record cash pile and recent stock sales.
Berkshire Class B shares rose 4.1% to $498.42 on Monday and have gained 10% since the start of the year. By comparison, the large cap S&P 500 index has returned 1.7% so far in 2025.
Below, we break down the technicals on Berkshire’s chart and identify important price levels worth watching out for.
Ascending Triangle Breakout
Since bottoming out near the 200-day moving average and the lower trendline of an ascending triangle, Berkshire shares have continued to trend higher, with the price breaking out above the pattern to a new all-time high today.
Importantly, the breakout occurred on the highest daily volume since December’s triple witching trading session, indicating institutional investors participated in the buying. Moreover, the relative strength index (RSI) confirms bullish price momentum with a reading above the 70 threshold, but also points to overbought conditions.
Let’s apply technical analysis to forecast potential upside price targets and also locate a key support level worth tracking during pullbacks.
Chart-Based Upside Targets
Measured Move Price Target
The measured move technique, also known as the measuring principle, forecasts an upside target by analyzing the depth of the ascending triangle to project a potential move higher. To apply the analysis to Berkshire’s chart, we calculate the distance between the pattern’s two trendlines near their widest section and add that amount to the breakout point. For instance, we add $70 to $485, which forecasts a target of $555.
Bars Pattern Price Target
Bars pattern analysis projects a possible upside target by studying prior trends to predict how a future directional move may play out. When applying this tool, we extract the price bars comprising the stock’s trend higher following an earlier ascending triangle on Berkshire’s chart and reposition them from the current pattern’s top trendline. This predicts a target of around $560.
Key Support Level to Track During Pullbacks
Finally, during pullbacks, investors should keep a close eye on the key $485 level. Investors who look for retracement entry points may see value in this area near the ascending triangle’s top trendline, which could flip from a place of prior resistance into an area of future support.
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As of the date this article was written, the author does not own any of the above securities.